PPG Industries Inc. (PPG - Free Report) has inked a deal to acquire Industria Chimica Reggiana (ICR) S.p.A. The transaction is slated to close in the first quarter of 2020, subject to customary closing conditions. The financial terms of the deal have been kept under wraps.
Industria Chimica Reggiana is an Italy-based paint and coating manufacturer for automotive refinish and light industrial coatings industries. Industria Chimica Reggiana, which employs about 180 people, sells products in over 70 countries in Europe, Africa, the Middle East, the United States and Latin America. Notably, the company, founded in 1961, manufactures automotive refinish products including primers, putties, basecoats and clear coats under the SPRINT brand.
Per PPG Industries, the buyout will complement its current product offering for the automotive refinish and light industrial coatings industries, and include value-added advanced items to meet the needs of body shops and distributors.
Shares of PPG Industries have gained 26.5% in the past year against the industry’s decline of 23.1%.
The company anticipates the fourth quarter to witness soft global economic growth. It expects the same to impact several end-use markets.
For full-year 2019, the company anticipates adjusted earnings per share (EPS) in the range of $6.17-$6.27. This takes into consideration year-over-year growth projection at constant currencies of 15% at the mid-point for the fourth quarter.
Moreover, the adjusted EPS guidance lies at the low-to-mid end of the previously announced 7-10%, excluding the impact of currency translation.
PPG Industries anticipates sales growth in a low-single-digit percentage for the year, which excludes the impact of currency translation.
PPG Industries, Inc. Price and Consensus
Zacks Rank & Stocks to Consider
PPG Industries currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Daqo New Energy Corp. (DQ - Free Report) , Pan American Silver Corp. (PAAS - Free Report) and Sibanye Gold Limited (SBGL - Free Report) .
Daqo New Energy has projected earnings growth rate of 294.7% for 2020. The company’s shares have rallied 110.6% in a year. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pan American Silver has an estimated earnings growth rate of 38.1% for 2020. It currently flaunts a Zacks Rank #1. The company’s shares have gained 45% in a year.
Sibanye Gold has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 587.5% for 2020. The company’s shares have soared 228.7% in a year
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